Systems at Risk Episode 3 | Craig Pirrong, Professor of Finance and Director, Global Energy Management Institute, Bauer College of Business University of Houston
SmarterMarkets™
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Are Merchant Energy Companies Too Essential to Fail?
In recent years, there seems to be a push by exchanges to move more towards cash settled instruments and away from physically settled. And i suppose, in terms of thinking, are they too essential to fail? The fact that their assets and operations could be absorbed by a competitor or someone else in market would mean that the supply lines would keep moving even if one were to run into solvency issues. I was curious, some one looked a lot of market structure, what do you make of these moves of, you know, cash verse physical and trying to have more real time clearing?
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